Gold Prices Drop Following Treasury Secretary Pick and Ceasefire Talks

The appointment of Scott Bessent and potential Israel-Hezbollah truce influence investor sentiment, contributing to a volatile precious metals market.

Gold prices fell by up to 3% after President-elect Donald Trump nominated Scott Bessent as Treasury Secretary and reports emerged of progress in Israel-Hezbollah ceasefire discussions.
The decline follows a sharp rally last week, driven by geopolitical tensions and safe-haven demand, with gold still up over 28% year-to-date.
Silver prices also dropped, reflecting concerns over weak economic conditions in Europe and China, as well as limited stimulus measures from Beijing.
Central bank gold purchases remain strong, but profit-taking and reduced physical demand from Asian markets are weighing on prices.
Investors are closely watching upcoming U.S. Federal Reserve data and policy signals, with mixed expectations for a December rate cut and potential inflation surprises.